In this video: Chief Market Strategist Gareth Soloway issued a prediction weeks ago: Crude Oil was forming a wedge that would lead to it becoming the best-performing asset of early 2026. Today, that breakout is officially confirmed.
Gareth dives deep into the technical charts to reveal his exact upside targets for Oil and the fundamental "AI Energy" factors fueling this move. But the energy trade doesn't stop there—Natural Gas has just tagged a multi-year "epic" support trendline, signaling a high-probability bounce of up to 21%. Video by Gareth Soloway.
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Key Breakout Levels (WTI Crude)
-Upside Resistance ($58 – $60): A sustained daily close above $58 (near the 50-period moving average) is the primary short-term target for bulls. A stronger breakout above $60 is required to challenge the upper boundary of the six-month descending channel.
-Bullish Reversal Confirmation ($62.60): A weekly close above this level could signal a long-term structural shift, opening a path toward $66.40 and eventually $70.
-Downside Support ($55): This level marks the critical 2025 lows. A breakdown below $55 would reinforce a dominant bearish bias, potentially exposing the $49 – $51 price zone, which aligns with long-term trendline support from 2023.
Current Market Drivers
-Geopolitical Volatility: Tensions following the fall of Nicolás Maduro in Venezuela and discussions regarding the potential U.S. acquisition of Greenland are driving significant market uncertainty.
-Oversupply Risks: Despite OPEC+ maintaining a production hold for Q1 2026, the International Energy Agency (IEA) forecasts a 4 million barrel per day surplus for the year.
-Inventory Builds: Recent U.S. Energy Information Administration (EIA) data showed a surprising build of 2.8 million barrels, which has limited bullish follow-through despite geopolitical risks.
Technical indicators such as the RSI and MACD are currently hovering around neutral levels, reflecting a lack of directional momentum. Traders are closely monitoring the $58.00 resistance and $55.00 support for the next major "breakout alert" that will define the trend for early 2026.
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